Using two unifying models and an empirical exercise, this paper present and extends the main theories linking income …-seeking abilities, as well as with the gap between rich and poor. It is not income inequality per se that matters, but inequality in the …

may move up the income ladder. This hypothesis commonly advanced as an explanation of why most democracies do not engage … redistributions if (and, in a sense, only if) tomorrow's expected income is increasing and concave in today's income. The laissez …

This paper studies the effects of progressive income taxes and education finance in a dynamic heterogeneous agent … to higher income growth than taxes and transfers, but at the cost of lower insurance. Overall efficiency is assessed … optimal rates. Aggregate income and aggregate welfare provide only very crude lower and upper bounds around the true …

income, and popular perceptions of the poor. The model shows in particular how complementarities arise endogenously between …

inequality in education and income more persistent across generations. Whether or not the same is true of inequality in total … lowers it in richer communities; thus average academic performance and income growth both fall. Yet it may still be possible …

The distribution of human capital and income lies at the center of a nexus of forces that shape a country's economic …

, while inequality tends to rise monotonically. Bonus caps and income taxes can help restore balance in agents' incentives and …